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City of St. Louis Park Housing Improvement Area November 10, 2010
City of St. Louis Park
Housing Improvement
Area
November 10, 2010
Agenda
• Introductions– Stephanie Statz, Greensboro Condominium
Owners Association President & Board Members
– Matt Lupkes, On Site Property Manager– Steve Pfeiffer, Gassen Company– Kathy Larsen, City of St. Louis Park Housing
Programs Coordinator
Agenda
• Meeting Purpose
Inform Greensboro Association
members about potential tool to pay for common area improvements.
“St. Louis Park is committed to providing a well maintained and diverse housing stock.”
Housing Improvement Area (HIA)
Financial Tool
• Association borrows funds
• Common area improvements
• Owners repay through HIA fee collected with property tax payments
• HIA fee paid only by owners – not citywide
HIA Statute
• Association must initiate • Over 50% owners petition City • Public Hearing required • Veto period – 45% of owners submit
written objections• Typically unit fee based on % of ownership same calculation used to determine
monthly association dues
Why Borrow $ from City?
• Lenders & Associations– Collateral – By-laws
• Last resort financing
• Risk to city low – paid with property taxes (only owners pay – not citywide fee)
• More affordable payment for owners
Payment of Fee
• Owners pay fee with property taxes– If taxes escrowed, fee included with mortgage
payment – If taxes are paid on May 15th, Oct 15th – fee
paid at same time
• Prepayment – Pay fee in advance– 2-6 month prepayment period
Payment of Fee
• When owner sells unit – To be determined if fee transfers with unit
• Hardship deferral – 65 years and older AND low income
OR– Permanently disabled AND low income
Process
• Association determines improvements
• Submits application to city
• City reviews financials/improvements
• Association distributes petition
• City Council Public Hearing & 2nd meeting
• Veto Period – 45 days
Petition is Your “Vote”
• 50% or more owners must sign petition requesting HIA and imposition of fee
• Type of improvement
• Estimated cost
• Estimated Interest rate – less than 6%
• Length of loan - 10-20 years
• Unit fee based on % ownership
Q & A
Contact Information
Greensboro Square Association President• Stephanie Statz, 952-303-6944, c 612-245-0500• [email protected]
On-Site Property Manager• Matt Lupkes, 952-254-0477• [email protected]
Contact Information
Gassen Company • Steve Pfeiffer, CMCA, 952-253-4924 or 952-922-5575
City of St. Louis Park• Kathy Larsen, 952-924-2196• [email protected]
